Wellspring Electronics manufactures and sells 50,000 units of a single product. The variable costs total $90,000, and fixed costs amount to $150,000. If each unit is sold for $10, what markup percentage is the company using?

Wellspring Electronics manufactures and sells 50,000 units of a single product. The variable costs total $90,000, and fixed costs amount to $150,000. If each unit is sold for $10, what markup percentage is the company using?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

See similar textbooks

Related questions

Q: What will be the depreciation expense for the machine in the first year?

A: Step 1: Definition of Double-Declining Balance Method of DepreciationThe double-declining balance…

Q: What is the amount of Stockholders' equity at the end of the year on these financial accounting…

A: Step 1: Definition of Stockholders' EquityStockholders' Equity, also known as shareholders' equity…

Q: What is the gross profit? Financial accounting

A: Step 1: Definition of Gross ProfitGross Profit is the financial gain a business earns after…

Q: Need help

A: Step 1: Definition of Book Value and Asset Disposal EntryBook value is the asset's original cost…

Q: Subject - General account

A: Step 1: Definition of Direct Labor Rate VarianceThe Direct Labor Rate Variance measures the…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Cash Flow from Operating Activities (Indirect Method)Cash flow from operating…

Q: None

A: Step 1: Definition of Net Income or Net LossNet Income or Net Loss is calculated by subtracting…

Q: Meridian Manufacturing is a division of a global corporation. Data concerning the most recent year…

Q: What is financial accounting? explain its parts clearly.

A: Financial Accounting: DefinitionFinancial accounting is the process of recording, summarizing, and…

Q: What is the companys cash cycle?

A: Formula:Cash Conversion Cycle (CCC) = Inventory Period + Accounts Receivable Period - Accounts…

Q: Please provide correct answer this financial accounting question

A: Step 1: Define Net IncomeNet Income is the amount of profit a company earns after subtracting all…

Q: Need correct solution this general accounting question give me fast

A: Step 1: Definition of Debt-to-Equity RatioThe Debt-to-Equity Ratio is a financial metric used to…

Q: Compute the unit contribution margin of this accounting question

A: Step 1: Definition of Unit Contribution MarginUnit Contribution Margin is the difference between the…

Q: June production? Financial accounting

A: Step 1: Definition of Standard Hours AllowedStandard Hours Allowed refers to the number of hours…

Q: The first section of the statement of cash flows pertains to __________activities.

A: The first section of the statement of cash flows pertains to operating…

Q: Given solution for General accounting question not use ai

A: Step 1: Define Cost of Goods Sold (COGS)The cost of goods sold (COGS) represents the direct costs…

Q: Which one is correct option? Accounting

A: To calculate the maturity value of the note, we use the formula: Maturity Value = Principal +…

Q: I need help with this solution and general accounting

A: Step 1: Definition of Actual Direct Materials Cost Actual Direct Materials Cost refers to the total…

Q: Please given correct answer for General accounting question I need step by step explanation

A: Step 1: Definition of Lease InterestLease interest refers to the total amount a lessee pays in…

Q: General accounting question

A: Step 1: Define Cost of Goods ManufacturedCost of goods manufactured (COGM) is the total cost…

Q: Get correct answer with accounting question

A: Step 1: Definition of Price/Earnings (P/E) RatioThe Price/Earnings (P/E) Ratio is a valuation metric…

Q: What is the amount of depreciation?

A: Step 1: Definitions Units-of-Activity Depreciation Method:The units-of-activity method depreciates…

Q: Labour hours to complete?

A: Step 1: Definition of Predetermined Overhead RateA predetermined overhead rate is calculated before…

Q: The statement of cash flows explains the changes in cash and cash __________ during the specified…

A: The statement of cash flows details how a company's cash and cash equivalents change over a specific…

Q: General Accounting Question please answer

A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate is a rate established…

Q: Purchase price variance whoud be? It's a accounting Sub que

A: Step 1: Definition of Materials Purchase Price VarianceMaterials Purchase Price Variance is the…

Q: The amount spent for capital expenditures will be reported in which section of the statement of cash…

A: Capital expenditures are reported in the "Cash Provided/Used in Investing Activities" section of the…

Q: Question 6

A: (a1) Depreciation Expense per Mile for Bus #3 (Units-of-Activity Method)Formula:Depreciation Expense…

Q: MC Company made sales to two customers. Both sales were on credit terms of 2/10, n/30. Customer A…

A: Explanation of Credit Terms: Credit terms represent the payment conditions a company offers to…

Q: What is the cost of good sold for the year?

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) is the total cost of…

Q: General accounting

A: We must compute the Benefit-Cost Ratio (BCR) in order to decide if the city should move forward with…

Q: Incorrect question unhepl

A: Step 1. Definition of Return on Assets (ROA)Concept of ROA. Return on Assets (ROA) tells us how…

Q: Get correct solution this general accounting question

A: Step 1: Define Operating IncomeOperating income is the profit a company earns from its core business…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Net Income (Accrual Accounting)Net income, under accrual accounting, is the…

Q: None

A: Step 1: Definition of Standard Direct Materials QuantityThe standard direct materials quantity is…

Q: Jenny leased equipment from Julio on December 31, 2015. The lease is a 10-year lease with annual…

A: Step 1: Introduction to leaseA lease is defined as a contractual agreement incorporated between two…

Q: Lalit Lumber Company has sales of $13 million per year, all on credit terms calling for payment…

A: Step 1: Definitions Concept of Days Sales Outstanding (DSO):DSO, or Days Sales Outstanding, measures…

Q: Morgantown Movers has a net working capital of $12,800, current assets of $33,300, equity of…

A: Step 1: Definitions Net Working Capital (NWC):Net working capital represents the difference between…

Q: Hello tutor please given General accounting question answer do fast and properly explain all answer

A: Step 1: Definition of Net IncomeNet Income is the profit or loss of a business calculated by…

Q: Ending account balance

A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the owners' residual…

Q: ???

Q: Please correct my mistakes:

A: Calculate the correct values, and provide the proper explanation. Below break it down step by step.…

Q: Asset, __________, and stockholders' equity accounts are known as balance sheet accounts.

A: Final Answer: LiabilityExplanation:Asset, liability, and stockholders' equity accounts are known as…

Q: Selling price per unit: 220, variable expense per unit: 95

A: Explanation of Contribution Margin: Contribution margin represents the portion of each sales dollar…

Q: Please given correct answer for General accounting question I need step by step explanation

A: Step 1: Define Ending InventoryThe ending inventory is the value of goods available in the warehouse…

Q: On December 1, your company paid its insurance agent $2,400 for the annual insurance premium…

A: The correct date to record the December adjusting entry is December 31.Explanation:Your company…

Q: Please given correct option for General accounting question I need step by step explanation

A: To find the total assets, we add up all asset accounts. Assets typically include things like cash,…

Q: ??!!

A: Step 1: Definition of Material Price VarianceMaterial Price Variance (MPV) measures the difference…

Q: Financial accounting

A: Step 1: Define Net SalesNet sales is the amount of revenue a company earns from its sales after…

Q: What is the company's gross profit?

A: Explanation of Sales Revenue:Sales revenue is the total amount earned from selling goods or services…

Question

100%

Please solve this question Financial accounting and step by step explanation

Wellspring Electronics manufactures and sells 50,000
units of a single product. The variable costs total
$90,000, and fixed costs amount to $150,000. If each
unit is sold for $10, what markup percentage is the
company using?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.
Jordy Enterprises sells a product for $75 per unit. Variable costs per unit are $40, and monthly fixed costs are $320,000. What unit sales would be required to earn a target profit of $200,000?
Bradford Enterprises sells two products, blue pens and green notebooks. Bradford predicts that it will sell 3,200 blue pens and 900 green notebooks in the next period. The unit contribution margins for blue pens and green notebooks are $2.80 and $4.20, respectively. What is the weighted average unit contribution margin?
Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?
Please help
Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players $ 50 $30 Tablets 120 80 a. Compute the break-even sales (units) for the overall product, E.units b. How many units of each product, game players and tablets, would be sold at the break-even point? Digital game players units Computer tablets units
Jordy Enterprises sells a product for $75 per unit. Variable costs per unit are $40, and monthly fixed costs are $320,000. What unit sales would be required to earn a target profit of $200,000? Right answer
Asher Company sells two products—X and Y. Product X is sold for $30 per unit and has a variable cost per unit of $15. Product Y is sold for $30 per unit and has a variable cost of $10 per unit. Total fixed costs for the company are $20,000. Asher Company typically sells three units of Product X for every unit of Product Y. What is the breakeven point in total units? (Round any intermediate calculations to two decimal places, and your answer to the nearest unit.)
Bradford Enterprises sells two products, blue pens and green notebooks. Bradford predicts that it will sell 3,200 blue pens and 900 green notebooks in the next period. The unit contribution margins for blue pens and green notebooks are $2.80 and $4.20, respectively. What is the weighted average unit contribution margin? Provide answer